The objectives of the project as a whole are to stimulate technological and institutional changes to
demonstrate inter-fuel substitution and energy efficiency improvement as means to support the country
objectives. The total project aims at encouraging and introducing more rapid transition from coal to gas
and introducing more energy efficiency in residential buildings.

The total project has the following components:

a coal-to-gas conversion component, involving investments in about 30 non-industrial small to medium
size heat plants (boilers) for their conversion from coal to natural gas. The projects are for residential
houses and public buildings; the project consists of the new technologies that include gas fired
cogeneration unit of heat and electricity, condensing boilers as well as conventional gas fired boilers;

an energy efficiency component, involving investments in insulation of buildings and the installation
of energy efficient equipment in some hundred new residential units;

The AIJ factor of the project is funded with a grant of 1.1 million USD from the Department of Natural
Resources and Environmental Affairs of the Government of Norway. Non-AIJ related financing of the project
includes grant of 25 million USD from the GEF and further 22 million USD from the Polish National Fund for
Environmental Protection and Water Management (National Fund, NF), Voivodeship Funds (VF), Environmental
Protection Bank (BOS) and private investors in Poland.

The funding of the Government of Norway was the reason, that this project functions as an Activities
Implemented Jointly - AIJ demonstration project, with the objective of assisting Parties to the United
Nations Framework Convention on Climate Change - UNFCCC in gaining experience on how the mechanism of
Activities Implemented Jointly might work. The project is administered by the BOS and the World Bank and is
related to other Bank operations in Poland. The GEF funding is separate from the AIJ financing.

The overall project has an estimated lifetime of 17 years and will give substantial reductions in
greenhouse gas emissions and at the same time reduce air pollution. It has been planned in a manner
consistent with national priorities for sustainable energy development.

A. 2) Participants/actors:

The donor country is the Government of Norway, represented by the Royal Norwegian Ministry of Foreign
Affairs (RNMFA), Department of Natural Resources and Environmental Affairs. The host is the Government of
Poland, represented by the Ministry of Environment (MoE), Department of Servicing Foreign Assistance Funds.

The entity responsible for co-ordination and reporting on AIJ activities in Poland is the National Fund for
Environmental Protection and Water Management (NF), Executive Office for the Climate Convention, Joint
Implementation-Secretariat. The implementing agency is the Environmental Protection Bank (BOS). Within the
World Bank, the Department for Central and Eastern Europe is charged with management of the project, while
the Global Environment Department assists in development of the AIJ factor.

The host investors are the private boiler owners, public entities and self-governments.

Please fill in one table for each participant/actor. For individuals fill in as from item
"Function within activity".

E. Calculation of the contribution of activities implemented jointly projects that bring about real,
measurable and long-term environmental benefits related to the mitigation of climate change that would not
have occurred in the absence of such activities